Law360 Reports on Shareholder Suit Against RAE Systems Inc. Over Battery Ventures Merger
On November 5, 2010, Law360 reported on the shareholder suit filed by Robbins Umeda LLP* on behalf of one of its clients, a shareholder of the radiation detection maker RAE Systems Inc. The lawsuit alleges RAE Systems, certain company executives, and technology investment company Battery Ventures Inc. took unfair advantage of a temporary stock value drop caused by a federal investigation to pursue their personal interests over those of the company and its shareholders.
The suit seeks a retraction of the proposed merger with Battery Ventures Inc. or an injunction against completion of the deal; an order directing a fair sale; imposition of a constructive trust in the plaintiffs’ favor; and costs. The five-count complaint asserts a claim for breach of fiduciary duty against the individual defendants, two violations of the Securities Exchange Act of 1934, and counts of aiding and abetting against the corporate entities.
The case is LaPlante v. RAE Systems Inc., et al., case number 5:10-cv-4944, in the U.S. District Court for the Northern District of California.
* The firm name changed from Robbins Umeda LLP to Robbins Arroyo LLP on January 1, 2013.